diff --git a/webapp/channels/src/components/drafts/drafts_link/__snapshots__/drafts_link.test.tsx.snap b/webapp/channels/src/components/drafts/drafts_link/__snapshots__/drafts_link.test.tsx.snap
deleted file mode 100644
index e9da093d4d..0000000000
--- a/webapp/channels/src/components/drafts/drafts_link/__snapshots__/drafts_link.test.tsx.snap
+++ /dev/null
@@ -1,37 +0,0 @@
-// Jest Snapshot v1, https://goo.gl/fbAQLP
-
-exports[`components/drafts/drafts_link should match snapshot 1`] = `
-<ContextProvider
-  value={
-    Object {
-      "store": Object {
-        "clearActions": [Function],
-        "dispatch": [Function],
-        "getActions": [Function],
-        "getState": [Function],
-        "replaceReducer": [Function],
-        "subscribe": [Function],
-      },
-      "subscription": Subscription {
-        "handleChangeWrapper": [Function],
-        "listeners": Object {
-          "notify": [Function],
-        },
-        "onStateChange": [Function],
-        "parentSub": undefined,
-        "store": Object {
-          "clearActions": [Function],
-          "dispatch": [Function],
-          "getActions": [Function],
-          "getState": [Function],
-          "replaceReducer": [Function],
-          "subscribe": [Function],
-        },
-        "unsubscribe": null,
-      },
-    }
-  }
->
-  <Memo(DraftsLink) />
-</ContextProvider>
-`;
diff --git a/webapp/channels/src/components/drafts/drafts_link/drafts_link.test.tsx b/webapp/channels/src/components/drafts/drafts_link/drafts_link.test.tsx
index 08382c7bff..769365d1da 100644
--- a/webapp/channels/src/components/drafts/drafts_link/drafts_link.test.tsx
+++ b/webapp/channels/src/components/drafts/drafts_link/drafts_link.test.tsx
@@ -1,23 +1,241 @@
 // Copyright (c) 2015-present Mattermost, Inc. All Rights Reserved.
 // See LICENSE.txt for license information.
 
-import {shallow} from 'enzyme';
 import React from 'react';
-import {Provider} from 'react-redux';
+import {MemoryRouter, Route} from 'react-router-dom';
 
-import mockStore from 'tests/test_store';
+import type {DeepPartial} from '@mattermost/types/utilities';
+
+import {renderWithContext, screen, waitFor} from 'tests/react_testing_utils';
+import {SCHEDULED_POST_URL_SUFFIX} from 'utils/constants';
+import {TestHelper} from 'utils/test_helper';
+
+import type {GlobalState} from 'types/store';
 
 import DraftsLink from './drafts_link';
 
-describe('components/drafts/drafts_link', () => {
-    it('should match snapshot', () => {
-        const store = mockStore();
+// Mock the actions that are dispatched
+jest.mock('actions/views/drafts', () => ({
+    getDrafts: jest.fn(() => ({type: 'MOCK_GET_DRAFTS'})),
+}));
 
-        const wrapper = shallow(
-            <Provider store={store}>
+jest.mock('mattermost-redux/actions/scheduled_posts', () => ({
+    fetchTeamScheduledPosts: jest.fn(() => ({type: 'MOCK_FETCH_SCHEDULED_POSTS'})),
+}));
+
+// Base state with all required properties
+const baseState: DeepPartial<GlobalState> = {
+    entities: {
+        general: {
+            config: {
+                ScheduledPosts: 'true',
+            },
+            license: {
+                IsLicensed: 'true',
+            },
+        },
+        preferences: {
+            myPreferences: {},
+        },
+        teams: {
+            currentTeamId: 'team1',
+            teams: {
+                team1: TestHelper.getTeamMock({id: 'team1'}),
+            },
+        },
+        users: {
+            currentUserId: 'user1',
+            profiles: {
+                user1: TestHelper.getUserMock({id: 'user1'}),
+            },
+        },
+        scheduledPosts: {},
+        channels: {
+            channels: {
+                channel_id_1: TestHelper.getChannelMock({id: 'channel_id_1', type: 'O'}),
+            },
+            channelsInTeam: {
+                team1: new Set(['channel_id_1']),
+            },
+            myMembers: {
+                channel_id_1: {channel_id: 'channel_id_1', user_id: 'user1'},
+            },
+        },
+    },
+    views: {
+        drafts: {
+            remotes: {},
+        },
+    },
+};
+
+// Helper function to render the component with router
+const renderWithRouter = (state: any, initialEntries = ['/team1/channels/town-square']) => {
+    return renderWithContext(
+        <MemoryRouter initialEntries={initialEntries}>
+            <Route path='/:team'>
                 <DraftsLink/>
-            </Provider>,
+            </Route>
+        </MemoryRouter>,
+        state,
+    );
+};
+
+describe('components/drafts/drafts_link', () => {
+    it('should not render when no drafts or scheduled posts exist', () => {
+        renderWithRouter(baseState);
+
+        expect(screen.queryByText('Drafts')).not.toBeInTheDocument();
+    });
+
+    it('should render when drafts exist', () => {
+        const state: DeepPartial<GlobalState> = {
+            ...baseState,
+            storage: {
+                storage: {
+                    draft_draft1: {timestamp: new Date(), value: {message: 'Draft message', show: true, channelId: 'channel_id_1'}},
+                },
+            },
+        };
+
+        renderWithRouter(state);
+
+        expect(screen.getByText('Drafts')).toBeInTheDocument();
+        expect(screen.getByTestId('draftIcon')).toBeInTheDocument();
+    });
+
+    it('should render when scheduled posts exist', () => {
+        const state: DeepPartial<GlobalState> = {
+            ...baseState,
+            entities: {
+                ...baseState.entities,
+                scheduledPosts: {
+                    byTeamId: {
+                        team1: ['scheduled_post1', 'scheduled_post2'],
+                    },
+                },
+            },
+        };
+
+        renderWithRouter(state);
+
+        expect(screen.getByText('Drafts')).toBeInTheDocument();
+        expect(screen.getByTestId('scheduledPostIcon')).toBeInTheDocument();
+    });
+
+    it('should not show scheduled posts badge when scheduled posts are disabled', () => {
+        const state = {
+            ...baseState,
+            entities: {
+                ...baseState.entities,
+                scheduledPosts: {
+                    byTeamId: {
+                        team1: ['scheduled_post1', 'scheduled_post2'],
+                    },
+                },
+                general: {
+                    config: {
+                        ScheduledPosts: 'false',
+                    },
+                },
+            },
+        };
+
+        renderWithRouter(state);
+
+        expect(screen.queryByTestId('scheduledPostIcon')).not.toBeInTheDocument();
+    });
+
+    it('should not show scheduled posts badge when not licensed', () => {
+        const state = {
+            ...baseState,
+            entities: {
+                ...baseState.entities,
+                scheduledPosts: {
+                    byTeamId: {
+                        team1: ['scheduled_post1', 'scheduled_post2'],
+                    },
+                },
+                general: {
+                    license: {
+                        IsLicensed: 'false',
+                    },
+                },
+            },
+        };
+
+        renderWithRouter(state);
+
+        expect(screen.queryByTestId('scheduledPostIcon')).not.toBeInTheDocument();
+    });
+
+    it('should show error indicator when scheduled posts have errors', () => {
+        const state: DeepPartial<GlobalState> = {
+            ...baseState,
+            entities: {
+                ...baseState.entities,
+                scheduledPosts: {
+                    byTeamId: {
+                        team1: ['scheduled_post1', 'scheduled_post2'],
+                    },
+                    errorsByTeamId: {
+                        team1: ['scheduled_post1'],
+                    },
+                },
+            },
+        };
+
+        renderWithRouter(state);
+
+        const badge = screen.getByTestId('scheduledPostIcon').closest('.scheduledPostBadge');
+        expect(badge).toHaveClass('persistent');
+    });
+
+    it('should fetch scheduled posts when component mounts', async () => {
+        const fetchTeamScheduledPosts = require('mattermost-redux/actions/scheduled_posts').fetchTeamScheduledPosts;
+
+        renderWithRouter(baseState);
+
+        await waitFor(() => {
+            expect(fetchTeamScheduledPosts).toHaveBeenCalledWith('team1', true);
+        });
+    });
+
+    it('should be active when on drafts route', () => {
+        const state: DeepPartial<GlobalState> = {
+            ...baseState,
+            storage: {
+                storage: {
+                    draft_draft1: {timestamp: new Date(), value: {message: 'Draft message', show: true, channelId: 'channel_id_1'}},
+                },
+            },
+        };
+
+        renderWithRouter(
+            state,
+            ['/team1/drafts'],
         );
-        expect(wrapper).toMatchSnapshot();
+
+        const navLink = screen.getByText('Drafts').closest('a');
+        expect(navLink).toHaveClass('active');
+    });
+
+    it('should be active when on scheduled posts route', () => {
+        const state: DeepPartial<GlobalState> = {
+            ...baseState,
+            storage: {
+                storage: {
+                    draft_draft1: {timestamp: new Date(), value: {message: 'Draft message', show: true, channelId: 'channel_id_1'}},
+                },
+            },
+        };
+
+        renderWithRouter(
+            state,
+            [`/team1/${SCHEDULED_POST_URL_SUFFIX}`],
+        );
+
+        const navLink = screen.getByText('Drafts').closest('a');
+        expect(navLink).toHaveClass('active');
     });
 });
diff --git a/webapp/channels/src/components/drafts/drafts_link/drafts_link.tsx b/webapp/channels/src/components/drafts/drafts_link/drafts_link.tsx
index d6713e4eed..3a14b0d50d 100644
--- a/webapp/channels/src/components/drafts/drafts_link/drafts_link.tsx
+++ b/webapp/channels/src/components/drafts/drafts_link/drafts_link.tsx
@@ -2,7 +2,7 @@
 // See LICENSE.txt for license information.
 
 import classNames from 'classnames';
-import React, {memo, useEffect, useMemo, useRef} from 'react';
+import React, {memo, useCallback, useEffect, useMemo, useRef} from 'react';
 import {FormattedMessage} from 'react-intl';
 import {useSelector, useDispatch} from 'react-redux';
 import {NavLink, useRouteMatch} from 'react-router-dom';
@@ -63,7 +63,9 @@ function DraftsLink() {
     const isDraftUrlMatch = useRouteMatch('/:team/drafts');
     const isScheduledPostUrlMatch = useRouteMatch('/:team/' + SCHEDULED_POST_URL_SUFFIX);
 
-    const urlMatches = isDraftUrlMatch || isScheduledPostUrlMatch;
+    const urlMatches = Boolean(isDraftUrlMatch || isScheduledPostUrlMatch);
+
+    const isNavLinkActive = useCallback(() => urlMatches, [urlMatches]);
 
     useEffect(() => {
         if (syncedDraftsAllowedAndEnabled) {
@@ -123,6 +125,7 @@ function DraftsLink() {
                     draggable='false'
                     className='SidebarLink sidebar-item'
                     tabIndex={0}
+                    isActive={isNavLinkActive}
                 >
                     <i
                         data-testid='sendPostIcon'